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Family company survival depends on efficient succession

The succession process is a critical stage for the management of a family business, because both success and the continuity of the business depend on it. This process demands planning and management, in order to guarantee the company survival and prevent that family conflicts affect the business dynamics. Therefore, only companies that know their markets well and are able to adapt and meet requirements have real chances to survive.  

 

One major challenge faced in the succession process is lack of retirement planning – there is the need to leave the decision-making. The resistance in transferring the power is related not only to perspectives of productive life coming to an end that this scenario may bring, but also to an emotional bond to a whole life related to the family heritage.

 

As a result, many producers, even though they want the next generation to continue running the family business, do not intend to stop helping the company, which shows the importance to prepare the next in line for changes.

 

Many rural producers would like their children to keep the inherited land. However, they believe they would sell it, because they understand the difficulties for the family to remain in the activity.

 

A solution for conflicting situations is naturally the good relations in the family. In part of the cases, conflicts occur due to different points of view, and it is common that actions and changes proposed by the next in line are discredited. However, this may change as they obtain positive results.

 

The next generation is usually concerned in not failing to take over the business and in surpassing actions previously taken in order to continue in the prosperity path.   

 

Although the next in line recognizes and valuates preceding actions, mainly because of the previous owner’s experience, they do understand the need to stablish clear definitions, in order to prevent their influence on decisions of the new managing way.

 

However, conflicts among members of the family are not obstacles. On the contrary, these situations, when overcome, are recognized as good opportunities to reconnect parents and children.

 

The next generation usually recognizes the struggle and the history created by parents, feeling the responsibility to continue the heritage. This action awakens feelings of admiration and respect, strengthening bonds of trust and the commitment to the business longevity.

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